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February 23, 2004 Exposing The Myth Of The 5-Cent RFID TagWhy RFID Tags Will Remain Costly This Decadeby Charles Homs with David Metcalfe, Sonoko Takahashi |
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This is an excerpt
Executive Summary
The initial hype around the potential for adding an RFID tag to every item in a supermarket persuaded RFID manufacturers to target the retail supply chain. Retailers and CPG manufacturers bought into the idea that they could use RFID tags economically if they cost €0.05. But complex manufacturing techniques, a costly assembly process, and a lack of demand means the price of RFID tags won't drop to €0.05 in the next eight years. The Forrester model forecasts that RFID tag prices will decline, on average, only 9% year on year. To find a cheaper alternative, CPG manufacturers and retailers need to minimize tag functionality, target simple usage scenarios, or wait for a manufacturing breakthrough.
TABLE OF CONTENTS
- RFID Tag Manufacturers And Users Have Contrasting Views
- Reset Expectations: RFID Tag Prices Won't Tumble
WHAT IT MEANS
- High RFID Tag Prices Will Hit Demand And Supply
ALTERNATIVE VIEW
- Revolutionary Ways To Cut RFID Tag Manufacturing Costs
- Supplemental Material
- Related Research Documents
Features
Forecast: Class 0, Class 1, And Class 2 RFID Tag Prices, 2004 To 2012
Forecast: Class 4 RFID Tag Prices, 2004 To 2012
This is an excerpt
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